Recently, Yiwu Partnership negotiates friendly with Hansu and exits from Hanpu in case of horizontal
competition and the need for development funds. As a result Hanpu is 100%
holding by Hansu. Hansu will start the phase Ⅱ project of industrial hemp flower & leaf processing with developing
traditional tobacco industry in Yunxi.

Hempon started the factory construction in
Kunming last month. Its construction & technical standards are entirely
planned by Hansu. Hansu agreed to supply extract technology in paid to ensure
the continued implementation of the project. 37.14% technical shareholding transferred
at 130 million RMB. Chengzhi
Shareholding Co., Ltd. (Stock Code: 000990) and Huade Funds enlarge the
additional capital no less than 150 million RMB to continue to complete the
infrastructure investment of Hempmon. (All will be confirmed by public company
announcement as for its uncertainty)

Left：Peter Tan(Chairman of HMI Group)

Right：Long Dawei(Chairman of Tsinghua Holdings )

Advantages for Hansu,

The first, Hansu will finish the project of
industrial hemp flower & leaf processing together with its shareholder
Meilleure Health International Group（Stock Code: 02327）and that will not delay the schedule of the phase Ⅱ extraction project of HMI Group.

The second，Chengzhi Shareholding Co., Ltd. (Stock Code: 000990) and Huade Funds
paid 130 million RMB to Hansu as transference expenses which fully reflected
that Tsinghua highly approving HMI Group IP management ,operation mode and
technology which established Hansu leading position of in the field of
industrial hemp extraction & processing.